CFCI (Certified Financial Crimes
Investigator) Study Guide Real Exam
Accurate Questions with 100% Rated
Correct Expert Verified Answers Get It A+
Latest Update 2025
Chapter 3 review points --- correct answer ---• While fraud was
instrumental in bringing about the subprime mortgage crisis, it is
important for anti-fraud professionals to remember that nonmortgage
loan frauds and numerous forms of other internal white-collar crime
also can be very costly.
• Mortgage fraud, while sometimes perpetrated by dishonest insiders,
is primarily an externally initiated fraud. The criminals typically
include dishonest mortgage brokers, appraisers, borrowers, and
builders.
• The first step toward preventing employee-level fraud is
understanding and detecting the numerous red flags of such schemes.
• With a solid understanding of red flags, an organization can conduct
detailed risk assessments to gather evidence of suspected frauds and
put into place effective controls to minimize vulnerability to most
employee-level frauds.
,• A virtually limitless variety of anti-fraud controls can be
implemented to minimize the organization's fraud risk. The choice of
which controls to put into place is best determined by conducting a
fraud risk assessment that pinpoints signs of specific fraud
vulnerabilities.
2 types of employee level embezzlement --- correct answer ---1.
Looting customer accounts such as savings and checking by teller
skimming of bank funds.
2. Exploiting control weakness in the bank's operations such as
account payable and procurement.
Looting crimes --- correct answer ---Making unauthorized
withdrawals, by diverting funds of customers to accounts with false
records
Dormant account fraud --- correct answer ---Employees use dormant
accounts to transfer money. An account is considered dormant after
more than 12 months of inactivity and/or statements are returned as
undeliverable.
,Certificate of Deposit (CD) fraud --- correct answer ---Since the CD is
usually not touched by the account holder until maturity it gives the
employee opportunity to not record deposits.
Fraudulent fee reversal --- correct answer ---Bank employees or call
center reps would say they returned or credited a bank fee to a
customer when it was really credited to their own or coworkers
accounts.
Teller Theft of Skimming --- correct answer ---Simply put, stealing
cash from the teller drawer.
Theft of consignment items --- correct answer ---Theft of cashier's
checks, money orders, and traveler's checks
Accounts Payable (AP) or Billing Fraud --- correct answer ---Fraud
committed by a person responsible for paying company invoices, thus
giving them ample opportunity to send checks to fake invoices or shell
companies.
Shell company and/or phony invoice fraud --- correct answer ---
Setting up shell companies and submitting invoices to be paid, usually
, a high person who approves third-party payments. The company
appears real and legit.
Vendor Master File (VMF) manipulation --- correct answer ---
Employees with access to VMF can generate phony invoices, enter
bogus vendors, and obtain approval of fraudulent transactions.
Collusion with Vendors --- correct answer ---Dishonest vendors
typically involve a bribery or kickback scheme jointly perpetrated by a
bank employee and a crooked supplier.
Three-stages of collusion with vendors --- correct answer ---pre-
solicitation, solicitation, and submission.
What happens during the Pre-solicitation phase? --- correct answer ---
1. Purchase of Unnecessary good. Dishonest insiders accept bribes or
kickbacks from a specific vendor in exchange for recognizing the need
for the vendor's product or services by his or her organization.
2. Specification schemes. Vendors pay corrupt bank employees to
write contract specifications that favor their particular goods or
services.
3. Bid Splitting. This fraud occurs when competitive bidding is
required only for contracts or purchases over a minimum amount., a
Investigator) Study Guide Real Exam
Accurate Questions with 100% Rated
Correct Expert Verified Answers Get It A+
Latest Update 2025
Chapter 3 review points --- correct answer ---• While fraud was
instrumental in bringing about the subprime mortgage crisis, it is
important for anti-fraud professionals to remember that nonmortgage
loan frauds and numerous forms of other internal white-collar crime
also can be very costly.
• Mortgage fraud, while sometimes perpetrated by dishonest insiders,
is primarily an externally initiated fraud. The criminals typically
include dishonest mortgage brokers, appraisers, borrowers, and
builders.
• The first step toward preventing employee-level fraud is
understanding and detecting the numerous red flags of such schemes.
• With a solid understanding of red flags, an organization can conduct
detailed risk assessments to gather evidence of suspected frauds and
put into place effective controls to minimize vulnerability to most
employee-level frauds.
,• A virtually limitless variety of anti-fraud controls can be
implemented to minimize the organization's fraud risk. The choice of
which controls to put into place is best determined by conducting a
fraud risk assessment that pinpoints signs of specific fraud
vulnerabilities.
2 types of employee level embezzlement --- correct answer ---1.
Looting customer accounts such as savings and checking by teller
skimming of bank funds.
2. Exploiting control weakness in the bank's operations such as
account payable and procurement.
Looting crimes --- correct answer ---Making unauthorized
withdrawals, by diverting funds of customers to accounts with false
records
Dormant account fraud --- correct answer ---Employees use dormant
accounts to transfer money. An account is considered dormant after
more than 12 months of inactivity and/or statements are returned as
undeliverable.
,Certificate of Deposit (CD) fraud --- correct answer ---Since the CD is
usually not touched by the account holder until maturity it gives the
employee opportunity to not record deposits.
Fraudulent fee reversal --- correct answer ---Bank employees or call
center reps would say they returned or credited a bank fee to a
customer when it was really credited to their own or coworkers
accounts.
Teller Theft of Skimming --- correct answer ---Simply put, stealing
cash from the teller drawer.
Theft of consignment items --- correct answer ---Theft of cashier's
checks, money orders, and traveler's checks
Accounts Payable (AP) or Billing Fraud --- correct answer ---Fraud
committed by a person responsible for paying company invoices, thus
giving them ample opportunity to send checks to fake invoices or shell
companies.
Shell company and/or phony invoice fraud --- correct answer ---
Setting up shell companies and submitting invoices to be paid, usually
, a high person who approves third-party payments. The company
appears real and legit.
Vendor Master File (VMF) manipulation --- correct answer ---
Employees with access to VMF can generate phony invoices, enter
bogus vendors, and obtain approval of fraudulent transactions.
Collusion with Vendors --- correct answer ---Dishonest vendors
typically involve a bribery or kickback scheme jointly perpetrated by a
bank employee and a crooked supplier.
Three-stages of collusion with vendors --- correct answer ---pre-
solicitation, solicitation, and submission.
What happens during the Pre-solicitation phase? --- correct answer ---
1. Purchase of Unnecessary good. Dishonest insiders accept bribes or
kickbacks from a specific vendor in exchange for recognizing the need
for the vendor's product or services by his or her organization.
2. Specification schemes. Vendors pay corrupt bank employees to
write contract specifications that favor their particular goods or
services.
3. Bid Splitting. This fraud occurs when competitive bidding is
required only for contracts or purchases over a minimum amount., a
